Remittance propping up economy, says a report

Kathmandu, Nov 1 A report prepared by the World Bank has mentioned that although Nepal was witnessing growing trade loss, the foreign remittance contributed by the Nepali workers abroad was propping up country’s economy.

Despite the adversity, Nepal has been able to maintain economic growth rate of 6.2, said the report released titled ‘Nepal’s Development: Periodic Report’. The report was released by Finance Minister Dr Yubaraj Khatiwada on Thursday.

The end of load shedding, increased tourists arrival, investment by the private sectors were the factors contributing to the economic growth at this rate, according to the report.

In the recent period, the remittance was increased by 10 percent. Similarly, the capital expenditure surged to 82.4 percent, revenue collected witnessed significant increase and the public sector made 4 percent contribution to the gross domestic product.
The forest direct investment was upped by 32 percent.

The report has also chronicled various other sectors contributing to the GDP.
Moreover, the NEA added 102 MW electricity to the central transmission line.

On the occasion, Minister Dr Khatiwada underscored that the industrialists and entrepreneurs need to work in a transparent manner. The financial and banking sectors were facing problems because of the attitude seeking quick profits.

The Minister opined that the trade loss was increase also because the foreign remittance was used in the nonproductive sectors. Nation’s economy was affected owing to trade protectionism, he added.

World Bank Country Director for Nepal Qimiao Fan viewed that it was challenging to graduate the underdeveloped countries to the mid-income countries by 2030.